The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reportsthe number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the companys cost formulas appear below:

	Fixed Cost per Month		Cost per Course		Cost per Student
Instructor wages			$	2,930
Classroom supplies					$	300
Utilities	$	1,240	$	65
Campus rent	$	5,100
Insurance	$	2,100
Administrative expenses	$	3,900	$	44	$	4

For example, administrative expenses should be $3,900 per month plus $44 per course plus $4 per student. The companys sales should average $890 per student.

The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 57 students. The actual operating results for September appear below:

	Actual
Revenue	$	51,390
Instructor wages	$	11,000
Classroom supplies	$	18,150
Utilities	$	1,910
Campus rent	$	5,100
Insurance	$	2,240
Administrative expenses	$	3,746

Required:

1. Prepare the companys planning budget for September.

2. Prepare the companys flexible budget for September.

3. Calculate the revenue and spending variances for September.

Required 1 Required 2 Required 3 Prepare the company's planning budget for September. Gourmand Cooking School Planning Budget For the Month Ended September 30 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Required 1 Required 2 Required 3 Prepare the company's flexible budget for September. Gourmand Cooking School Flexible Budget For the Month Ended September 30 Revenue Expenses: Instructor wages Classroom supplies Utilities Campus rent Insurance Administrative expenses Total expense Net operating income Required 1 Required 2 Required 3 Calculate the revenue and spending variances for September. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) Gourmand Cooking School Revenue and Spending Variances For the Month Ended September 30 Actual Revenue and Spending Results Variances 4 Flexible Budget Courses Students 57 Revenue $ 51,390 Expenses: Instructor wages Classroom supplies Utilities 11,000 18,150 1,910 Campus rent 5,100 Insurance 2,240 Administrative expenses 3,746 Total expense 42,146 Net operating income $ 9,244